Heat olive oil in heavy large pot over medium het. Add beef and saute until brown on all sides, approximately 5 minutes. Add garlic and saute for another 1 minute. Add beef stock, Guinness, red wine, tomato paste, sugar, thyme, Worcestershire sauce and bay leaves. Bring to a boil. Cover, reduce heat to medium low and simmer for an hour.
Melt butter in saute pan. Add potatoes, onions and carrots. Saute 20 minutes.
Add vegetables to beef stew. Simmer uncovered for 40 minutes. Spoon off fat. Add parsley and salt and pepper.