The factory restore menu item does not do much good on a previously bricked kindle.
If you have not already done this, then download the original 5.0.0 mmcblk0p1 image from the "simple debricking" thread, and then use the linux "dd" command to write it from the kindle USB drive to /dev/mmcblk0p1.
If you have not alread erased /dev/mmcblk0p3, then copy /dev/zero to it to erase it.
You may also want to run the factory_restore script.
There are RUNME.sh scripts that do these linux commands for you, published in the "simple debricking" or "select boot" threads.
After this, you may want to install the 5.0.4 firmware update. Do not install older firmware updates due to a potentially mismatched linux kernel if you previously updated.