Amanda Seyfried and Ryan Phillippe
01/10/2011 AT 03:00 PM EST
Rumored lovebirds Ryan Phillippe
and Amanda Seyfried
shared a late-morning breakfast with friends on Friday at Los Angeles eatery Joan's On Third
. Seyfried, in a long coat and sunglasses, was joined by her dog Finn, and sat next to her beau at an outdoor table. "They were really cute," an onlooker tells PEOPLE. "The two of them smiled the whole time."