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While a fat quarter on any fabric gives you enough napkins for a gathering of four, if you're having a big party a full yard on 42- inch fabric will get you 16 napkins.
The widest fabric - 56 inches - will get you 4 napkins on a fat quarter but 20 on a full yard. (And the wider fabric on both fat q and yardage will give you a bit of useless partial napkins, as well. Hmmmm ... Wait! You could use the partial napkins to make Santa-face ornaments for your tree! Yes!)
One fat quarter gives you four foldable Santa Claus cocktail napkins, each approximately 4.25 inches square when folded in quarters. The red and white stripes around the edges is the hem allowance. Finish off as you please. And have a Merry Christmas!