Cook beef, bacon and chopped onion in a Dutch oven over medium-high heat until browned, about 8 to 10 minutes, stirring occasionally. Add remaining ingredients; cover and bake at 325 degrees for 1-1/2 hours. Uncover and bake for an additional 2 to 2-1/2 hour, stirring occasionally, until beef is fork-tender. Remove and discard bay leaves.