Kind of stupid. Kind of funny. But it lays emphasis on what a complete acid trip the beginning of Reading Rainbow had the potential to be for little kids.
then they follow the trail of watermelon seeds to KFC, but he already finished eating, so they follow the seeds to the movie theater in the bad part of town. they go inside and still can't see him, because thew theater is dark, but they can hear him shouting "ooohhhhhhh dayummmmmm!"