Food: Insanely fresh fish and seafood in a trendy setting on the beach with magnificent views. Reservations are essential. Ask to be seated on the deck. You can go inside to inspect the fish/seafood on ice and select what you would like. The offerings vary based on what was recently caught.
Wine: A short, great list with many of the best and most famous producers in the Alentejo and Lisbon area (closest wine regions). There are also a few options from Vinho Verde/Minho that are all good. Since this is a beach party place too, they have a plentiful spirits and cocktails selection.
My take: One of my favorite places in the world. After a short 45 minute drive from Lisbon (by crossing the Ponte 25 de Abril bridge!), you get to have a fabulous lunch of local seafood and delicious drink while admiring the beach and the beautiful people. Then make a buzzed barefoot hike up the huge sand dune to marvel at the panoramic vista over this stretch of the Atlantic coast. Then run-glide back down the dune in the pillowy sunken footsteps made by those who have done the same before you. Then take a nap or read a book on the beach and end with a dip in the cool ocean (with strong waves so be cautious). More on Bar do Peixe (FB says it is closed - it is not. Party central since '92).