In a large ovenproof pot or Dutch oven, cook the chopped bacon over medium heat until it's brown and crispy. Remove the bacon and set it aside
In the same pot, heat the olive oil over medium-high heat. Sauté the beef in batches, brown and set aside
Add the chopped onion and sliced carrots to the pot and sauté for a few minutes until they start to soften. Add the minced garlic and cook for another minute
Sprinkle the flour over the vegetables and stir well to coat. Add the tomato paste and stir for a minute or two
Pour in the red wine, bring to a simmer, scraping up any browned bits from the bottom of the pot
Return the browned beef and cooked bacon to the pot. Add the beef broth and bring the mixture to a gentle simmer
Cover the pot and transfer it to the preheated oven. Let it cook for about 2-2.5 hours, or until the beef is tender
Add the mushrooms and pearl onions to the beef stew during the last 30 minutes of cooking
Season the Beef Bourguignon with salt and pepper to taste. Remove the thyme sprigs and bay leaves. Garnish with chopped fresh parsley and serve hot