Which option would be best for Madrid layover should we pick a flight that has a 2 hour layover or 3hr 40 mins?

Spouse is saying 3.4 hrs but that just seems like a long time to be at the airport. She wants to make sure the kids have enough time to go to the bathroom and grab some food (Togo) for the next flight. Although I imagine they would give us breakfast on the flight to Madrid.

I believe we land in Terminal 4 take off from terminal 4 based on AA website. Based on reading everything security and to get to gate would take about 30-45 mins and 15 mins to get off the first flight so we should technically have 30 mins before the next boarding time for restrooms and to get water/food etc? Am I being too optimistic here ?