Prepare margarita glasses by moistening the rims with a lime wedge and dipping them alternately in red and white sugar to create a striped candy cane effect.

In a blender, combine tequila, simple syrup, limeade concentrate, peppermint schnapps, triple sec, and lemon juice.

Blend until smooth and transfer the mixture to a quart jar.

Refill the blender with ice cubes.

Pour one-quarter of the tequila mixture over the ice and blend until smooth.

Add grenadine to the blender for color while blending.

Pour the blended mixture into the prepared margarita glasses.

Add a splash of orange liqueur to each glass (optional).

Sprinkle crushed candy canes over each margarita.

Repeat the blending process with the remaining tequila mixture and ice cubes to serve additional margaritas.