Lyric discussion by Petrovich 

Cover art for Li'l Red Riding Hood lyrics by Sam The Sham And The Pharaohs

In short, it's about a guy who is poor/blue collar/ethnic (... think 'greaser'); who happens to desire a nice white girl. Middle class society thinks he's a bad wolf, even though he has a "big heart" and is trustworthy. This sexually attractive girl is walking in a rougher part of town and he wants to protect from other guys ("someone bad"). He's a good guy who just wants a chance with her ("even bad wolves can be good"). He tries to act as well-mannered, sophisticated, religious as possible ("the sheep suit"). But in the end, because of societal prejudice, he'll have to be satisfied with this brief moment walking with her.