Sesame Place said the incident was a misunderstanding and that staff had been in contact with the family to offer an exclusive meet-and-greet with all the characters at the theme park.
"Our brand, our park and our employees stand for inclusivity and equality in all forms," the statement from Sesame Place read on Instagram. "We do not tolerate any behavior in our parks that is contrary to that commitment.
"Regarding the incident yesterday. ...the performer portraying the Rosita character has confirmed that the 'no' hand gesture seen several times in the video was not directed to any specific person, rather it was a response to multiple requests from someone in the crowd who asked Rosita to hold their child for a photo, which is not permitted. The Rosita performer did not intentionally ignore the girls and is devastated about the misunderstanding."