In a large bowl, combine the peanuts, cereal and raisins. In a microwave, melt the butter, candy coating and peanut butter; stir until smooth. Pour over cereal mixture and toss to coat.
Working in batches, place sugar in a large bag; add coated mixture. Close bag and shake to coat. Spread onto baking sheets; sprinkle with M&M's. When cool, store in airtight containers.
