It looks so happy when it's in the air!

As others said, some squash and stretch would take this an step forward.

Having it squish at the bottom would give the animation more impact since it's a squid. Cool stuff! 

 I think the animation is really good!

Maybe a little piece of bread is missig there...?

But nice pixelart

 How about a palette swap to one of those bright red american weiners? The current palette actually looks like some kind of octopus. And how about a bit of the skin tied off on the end where it has been cut off from another one?

Mutated six-legged calamari :F ...I'd eat it.

 or, you could just call it jumping calamari :P

 I got an idea. Why don't you make the top part a hot dog color and keep the bottom the same. So it looks like a costume :D

I'm not a fan of mustard on hotdogs xP A little bit of ketchup on the head was my initial plan, but I didn't like how it looked in the animation.

 Perfect. Not only is mustard a must for hotdogs, it would also make people question whether this is simply an octopus or something more.

 Some mustard would help sell the effect, I think. Nice work!

I was afraid of that D: While I was drawing it, I noticed that all the tricks I could think of to make it really look like a hotdog (chiefly suggested textures) just didn't work at this scale, and/or made it really uncute. If this ends up disqualified because it doesn't immediately read as food, I'm not going to feel too sad.

Calamari is food too though ;D ...octopodes can have six legs right? *shot*

I would have never guessed it was a hot dog if I had not read the title/description. :(

 Lovely and cute!