Line cookie sheet with waxed paper. Melt candy coating in medium saucepan over low heat, stirring constantly. Stir in peppermint extract. Keep mixture warm over very low heat.
Dip pretzels, one at a time, in coating; allow excess to drip off each. Place on waxed paper-lined cookie sheet. Sprinkle tops of pretzels with crushed candy. Cool 20 minutes before serving.